This is interesting after reading about it.
1.5M loan given to a company in live stock and furs at a good APR
2.5M loan given to a company to build out a btc hosting center.
4.5M in revenue last Q at 53k a btc. After halving Q2 maybe 58 btc minted. Still around 4M at 68k a coin average. Two new loans say 12% on 4M. Another 40k a month in interest income. Starting June....3000 miners operating at cost at 15mw plant, loan secured with company assets...
Balance sheet appears to have 2M in liabilities. Nearly 40M in assets. Consisting of btc (11M) btc miners (20M after depreciation), AR in notes to the above mentioned companies, and Misc.
Through their SPAC they took ICU public...and looks like they own nearly 6 million warrants still and about 3% of the company in common shares. ICU has moved from $2s to nearly $8 this week. Warrants moving much much higher as well...
Furthermore, it appears the CFO and CEO purchased options at $30 a share here. They spent maybe 100k usd each on those rights.
Lastly, the RS and recent run in stock price has it at or above $5. Making it available for more funds and traders...
They plan on closing on a 15mw plant by month end. Sights on a 60mw plant. Each mw is about 275,000 usd to bring online. So maybe 12M usd is needed for 60mw. Maybe new s21 miners to occupy it. Their offering in 2021/2022 was around 35M. They eventually got delivered and running about 6k miners. 3k of those are going to the 15mw plant in July. What would go in the 60mw? Hosting? Own miners? Unclear.
Own miners they would need another 20M for purchasing them and working capital. With the new plant, 30-40M capital raise minimum to expand btc operations. With a 12M market cap? Doesn't sound possible. Unless shares rise to the 30 range for a 70M cap. Then it's more than reasonable.
Seems to be alot of meat on this bone. Unfortunately the street isn't convinced on the management, excessive operating costs primarily salaries and SGA, may have a sour taste in its mouth from the last raise, the -90% return, and enriching themselves on the execution of the plan vs rewarding shareholders that provided the funding.
Maybe they'll look to increase shareholder value this time. They have been living very well since the miners went online...but will they take it to the next level? History has said they do not...but it may be time.
I suspect a capital raise this year after a stock run up.
Management has to show some returns to investors to be rewarded with another hefty raise. Maybe they redeem themselves this year..
AI
